Kjell & Company has a clear ESG agenda with highly ambitious targets for its own operations and for others in the Company’s value chain. The Company’s ESG agenda revolves around clearly set targets in three areas included in the ESG concept. These are climate, social sustainability and corporate governance.
Sustainability impact in the value chain
The greatest environmental impact in the value chain is from the materials used in products, transportation from Asia to Europe and waste related to end products and packaging. Throughout the value chain and also among its own staff, the Company monitors its impact on social aspects, such as working conditions and human rights, particularly in Asia. As a brand owner with a large share of products from Asia, the Company upholds high integrity to pursue a policy of zero tolerance toward bribery and other forms of corruption.
A summary of sustainability impact in the value chain is presented below:
ESG risks and opportunities
The Company’s product offering makes, given its very nature, rigorous demands on product safety and quality, primarily with regard to materials and production but also on use by end consumers. This therefore makes rigorous demands on production methods and quality control, as well as requirements for a high level of expertise among staff to teach consumers safe use. Transparency in communication, responsible and ethical purchasing, and compliance with specific laws and regulations for products, become proportionally more relevant in terms of customer awareness and consequently increase market requirements in terms of safety and quality.
By actively searching and prioritising the assortment and products, Kjell & Company has a unique opportunity to provide its customers with new, energy-efficient products, and other ways to help reduce the energy consumption of its customers. As a retailer of accessories, and to a certain degree spare parts, a replacement adapter sold by the Company, for example, can extend the life of the main product and thus create less waste compared with if the customer had purchased a new product.
Environmental risks include abnormal weather conditions, such as above average heat and precipitation, and negative climate change, which could impact operations. Kjell & Company continuously monitors its carbon footprint from transportation, both domestic and international. The Company strives to use its nationwide store network as delivery hubs to reduce lead times and emissions. In addition, Kjell & Company has knowledge of its exposure to the impact of climate change and therefore reduces this risk through geographic diversification. The Company believes these activities will attract the conscious customers of the future as they intend to strengthen the perception of Kjell & Company as a sustainable brand.
Kjell & Company’s ESG initiatives 2020
PRIMARY ESG TARGETS 2020
1. Consumption: Product quality and safety
2. Production: Working conditions and human rights in the distribution chain
3. Production: Reduce environmental impact
4. Relationships: Motivated and satisfied employees in a diverse environment
5. Relationships: Business integrity and transparency
Primary ESG targets 2021
PRIMARY ESG TARGETS 2021
1. Climate: Reduce the Company’s CO2 emissions by 50% by 2030 relative to the Company’s sales
2. Employees: Be considered a fair and safe employer that offers good opportunities for personal and career development
3. Business ethics and controls: Set an example in terms of business ethics and social responsibility
Recognition of Kjell & Company’s sustainability work
Kjell & Company has a highly respected ESG agenda. In a report published by Ungdomsbarometern, electronics and technology brands were ranked based on which brands had the best sustainability work. Kjell & Company was ranked number five, which was the highest rating for a Nordic player in consumer electronics accessories. The only companies that ranked higher were Microsoft, Apple, Samsung and Electrolux.
According to Ungdomsbarometern, 44% of respondents consider ESG more now than before the outbreak of the COVID-19 pandemic. In total, 87% of respondents indicate that they consider ESG to be very important or quite important. The most important ESG areas include sustainable products and packaging, an environmentally-sound manufacturing process, fair working conditions, equality regardless of gender, ethnicity or sexual orientation and reduced mental illness among employees. Kjell & Company strives continuously to improve its ESG profile and in 2021 the Company is prioritising objectives in areas such as product safety, production conditions, environmental impact, equality and integrity. One clear example of Kjell & Company’s sustainability work is that the Company identified in 2019 an opportunity to use surplus plastic from production to create new products. As a result of the initiative, a charging cable for mobile phones manufactured from surplus plastic was launched.